01142747576 info@knowleswarwick.com

UK growth to remain ‘steady but sluggish’

6th December 2017

The UK economy is expected to grow steadily, but at a subdued rate in 2018.

According to the latest forecast by the Confederation of British Industry (CBI), GDP will grow 1.5% next year, and by 1.3% in 2019.

Quarterly GDP growth is predicted to remain at 0.3% until the end of 2019. This is almost half the average growth rate since 2013.

Squeezed household incomes are expected to reduce spending, while uncertainty surrounding Brexit will impact on business investment.

However, the forecast also suggests that strong growth in the global economy, combined with a lower pound, will provide exporting opportunities for businesses.

The government's recently announced Industrial Strategy will also aim to address productivity and growth issues in the UK.

Rain Newton-Smith, chief economist at the CBI, said:

"It is already clear Brexit is affecting business investment plans, and companies are having to prepare for a ‘no-deal' scenario.

"Therefore, it is vital progress is made in negotiations with Brussels, particularly in providing more clarity around transitional arrangements, so we can start to shape our new relationship with the EU."

Contact us to discuss your business.

Contractors Insurance Quote link button

Insurance quote provided by Caunce O'Hara. Caunce O'Hara is a chartered insurance broker, authorised and regulated by the FCA under firm’s reference number 306183. To verify this visit www.fca.org.uk/register

Click here for the Quickbooks website Xero Online Accounting Software Gold partner Click here for the IPSE website  ICAEW Chartered Accountant Click here for the B1G1 website Click here for the ACCA website Connect Yorkshire Free Index  Sheffield Chamber of Commerce Click here for the Caunce O'Hara website

Knowles Warwick Financial Services Limited is authorised and regulated by the Financial Conduct Authority (in respect of regulated investment, insurance and mortgage business). For regulated financial services, the Financial Ombudsman Service is the alternative dispute resolution provider.